Eltek Reports Full Year and Fourth Quarter 2021 Financial Results

<br /> Eltek Reports Full Year and Fourth Quarter 2021 Financial Results<br />

PR Newswire


  • Revenues of

    $33.8 million

    in 2021 compared to



    $36.7 million

    in 2020.

  • Net profit of

    $5.0 million

    in 2021 compared to a


    net profit of

    $2.6 million

    in 2020


    .

  • Revenues of

    $9.5 million

    in the


    fourth


    quarter of 2021 compared to



    $9.5 million

    in the


    fourth


    quarter of


    2020.

  • Net


    profit


    of

    $3.8 million



    in the


    fourth


    quarter of 2021 compared to


    net profit of



    $0.8 million



    in the


    fourth


    quarter of


    2020.

  • Gross margin of 20% for 2021.


  • $3.8 million

    EBITDA in the year, or 11% of total sales.

  • Cash flow provided by operating activities of

    $3.9 million

    for the year.

PETACH-TIKVA,

Israel

,

March 23, 2022

/PRNewswire/ — Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the full year and fourth quarter ended

December 31, 2021

.

Eltek_Logo


Mr.

Eli Yaffe

, Chief Executive Officer

, commented: “2021 was a challenging year in which we had to deal with a shortage of raw materials and the devaluation of the US Dollar against the Israeli Shekel. These two challenges impacted our results of operations. Despite this, we managed to end the year with

$1.5 million

of pre-tax income. In the fourth quarter we released the tax loss carryforward valuation allowance recorded in prior years, which resulted in income of

$3.5 million

. This release was based on our conclusion that it is more likely than not that our company will realize its deferred tax losses in the future. Thus, our net profit for 2021 was

$5.0 million


.

“In the fourth quarter and the beginning of 2022 Eltek succeeded in building a strong backlog for 2022. I am also glad to report that we received the

$1.4 million

purchase order from a defense customer which we reported earlier on

February 7, 2022

. We are continuing with our R&D programs in order to maintain our position as an Industry Innovation leader as well as to streamline and improve production processes and increase operational efficiency

,

” Mr. Yaffe added.

“We ended 2021 with a strong balance sheet. The company’s cash balances as of the end of 2021 amounted to approximately $

9.3

million and we had working capital of

$13.3 million

. Our improved financial condition allows us to continue to invest in equipment and machinery.

During 2021, we were able to increase the company’s customer base and we hope to continue this positive trend during 2022 as well,



Mr. Yaffe concluded.



Highlights of the Full Year of 2021 compared to the Full Year of 2020


  • Revenues

    for the full year of 2021 amounted to

    $33.8 million

    compared to revenues of

    $36.7 million

    in 2020, a decrease of 8% YoY.

  • Gross profit

    was

    $6.9 million

    (20% of revenues) in 2021 compared to a gross profit of

    $7.7 million

    (21% of revenues) in 2020.

  • Operating profit

    was

    $1.9 million

    in 2021 compared to operating profit of

    $3.0 million

    in 2020.

  • Net profit

    was

    $5.0 million

    or

    $0.86

    per fully diluted share in 2021, compared to a net profit of

    $2.6 million

    , or

    $0.58

    per fully diluted share in 2020.

  • EBITDA

    was

    $3.8 million

    in 2021 compared to EBITDA of

    $4.6 million

    in 2020.

  • Net cash provided by operating activities

    amounted to

    $3.9 million

    in 2021 compared to

    $3.3 million

    in 2020.

  • Cash and cash equivalents

    as of

    December 31, 2021

    were

    $9.3 million

    compared to

    $4.7 million

    as of

    December 31, 2020

    .



Highlights of the Fourth Quarter of 2021 compared to the Fourth Quarter of 2020


  • Revenues

    for the fourth quarter of 2021 were

    $9.5 million

    the same as in the fourth quarter of 2020.

  • Gross profit

    was

    $2.0 million

    (21% of revenues) in the fourth quarter of 2021 compared to

    $2.2 million

    (23% of revenues) in the fourth quarter of 2020.

  • Operating profit

    was

    $0.6 million

    in the fourth quarter of 2021 compared to operating profit of

    $1.0 million

    in the fourth quarter of 2020.

  • Net profit

    was

    $3.8 million

    or

    $0.65

    per fully diluted share in the fourth quarter of 2021 compared to a net profit of

    $0.8 million

    or

    $0.16

    per fully diluted share in the fourth quarter of 2020.

  • EBITDA

    was

    $1.1 million

    in the fourth quarter of 2021 compared to

    $1.4 million

    in the fourth quarter of 2020.


Use of Non-GAAP Financial Information

The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company’s results on a GAAP and non-GAAP basis is provided in a table below.


Conference Call

Eltek will conduct a conference call to discuss the results today,

Thursday, March 23, 2021

, at

8:30 a.m. Eastern Time

. The call will feature remarks by

Eli Yaffe

, Chief Executive Officer and

Ron Freund

, Chief Financial Officer.

To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:


United States

:                       1-866-860-9642

Israel:                                    03-9180691

International:                        +972-3-9180691

At:


8:30 a.m. Eastern Time


5:30 a.m. Pacific Time

14:30 p.m. Israel Time

A replay of the call will be available through the Investor Info section on Eltek’s corporate website at

Home




approximately 24 hours after the conference call is completed and will be archived for 30 days.


About Eltek

Eltek – “Innovation Across the Board”, is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is the Israeli leader in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in

Israel

,

the United States

,

Europe

and

Asia

.

Eltek was founded in 1970. The Company’s headquarters, R&D, production and marketing center are located in

Israel

. Eltek also operates through its subsidiary in

North America

and by agents and distributors in

Europe

,

India

,

South Africa

and

South America

.

For more information, visit Eltek’s web site at


www.nisteceltek.com


Forward Looking Statement:

Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company’s Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.


Investor Contact:



Ron Freund



Chief Financial Officer



[email protected]



+972-3-9395023



Eltek Ltd.



Consolidated Statements of Operations



(In thousands US$, except per share data)



Three months ended



Twelve months ended



December  31,



December  31,



2021



2020



2021



2020



Revenues



9,521



9,501



33,823



36,707



Costs of revenues



(7,565)



(7,290)



(26,926)



(28,969)



Gross profit



1,956



2,211



6,897



7,738


R&D expenses, net



(23)



(2)



(78)



(2)


Selling, general and administrative expenses



(1,310)



(1,236)



(4,870)



(4,704)



Operating profit



623



973



1,949



3,032


Financial expenses, net



(387)



(179)



(488)



(337)


Other income (expenses), net







(6)



41



(16)



Profit before income tax



236



788



1,502



2,679


Tax income (expenses), net



3,600



(22)



3,537



(71)



Net Profit



3,836



766



5,039



2,608



Earnings per share


Basic net profit per ordinary share



0.66



0.16



0.86



0.58


Diluted net profit per ordinary share



0.65



0.16



0.86



0.58


Weighted average number of ordinary shares used to compute


basic net profit per ordinary share (in thousands)



5,840



4,841



5,840



4,495


Weighted average number of ordinary shares used to compute


diluted net profit per ordinary share (in thousands)



5,860



4,852



5,869



4,501



Eltek Ltd.



Consolidated Balance Sheets



(In thousands US$)



December  31,



December 31,



2021



2020



Assets



Current assets


Cash and cash equivalents



9,283



4,735


Receivables:   Trade, net of provision for doubtful accounts



7,021



9,062


Other



798



700


Inventories



4,893



3,704


Prepaid expenses



586



619



Total current assets



22,581



18,820



Long term assets


Restricted deposits



226



62


Severance pay fund



66



64


Deferred tax assets and long term tax receivables, net



3,563






Operating lease right of use assets



8,979



8,948



Total long term assets



12,834



9,074



Fixed assets, less accumulated depreciation



7,368



7,263



Total Assets



42,783



35,157



Liabilities and Shareholder’s equity



Current liabilities


Short-term credit and current maturities of long-term debts



708



676


Accounts payable: Trade



4,044



4,452


Other



3,577



3,831


Short-term operating lease liabilities



931



742



Total current liabilities



9,260



9,701



Long-term liabilities


Long term debt, excluding current maturities



3,921



1,495


Employee severance benefits



344



338


Deferred tax liabilities, net







84


Long-term operating lease liabilities



8,186



8,272



Total long-term liabilities



12,451



10,189



Equity


Ordinary shares, NIS 3.0  par value authorized 10,000,000 shares, issued and outstanding 5,840,357 at December 31, 2021 and December 31, 2020



5,296



5,296


Additional paid-in capital



22,846



22,846


Cumulative foreign currency translation adjustments



3,716



3,153


Capital reserve



1,287



1,084


Accumulated deficit



(12,073)



(17,112)



Shareholders’ equity



21,072



15,267



Total liabilities and shareholders’ equity



42,783



35,157



Eltek Ltd.



Unaudited Non-GAAP EBITDA Reconciliations



(In thousands US$)



Non-GAAP EBITDA Reconciliations



Three months ended



Twelve months ended



December  31,



December  31,



2021



2020



2021



2020



Unaudited



Unaudited



GAAP net Income



3,836



766



5,039



2,608




Add back items:



Financial expenses, net



387



179



488



337


Income tax expense (income)



(3,600)



22



(3,537)



71


Depreciation and amortization



450



415



1,781



1,592



Non-GAAP EBITDA



1,073



1,382



3,771



4,608



Eltek Ltd.



Consolidated Statement of  Cash flow



(In thousands US$)



Three months ended



Twelve months ended



December  31,



December  31,



2021



2020



2021



2020



Cash flows from operating activities:



Net Income



3,836



766



5,039



2,608



Adjustments to reconcile net profit to net



cash flows provided by operating activities:


Depreciation and amortization



450



415



1,781



1,592


Capital (gain) loss on disposal of fixed assets, net







14







(2)


Stock-based compensation



74



30



203



121


Revaluation of long term loans















2


Increase in long term tax receivables



(1,013)







(1,013)






Decrease (increase) in deferred tax assets, net



(2,572)



15



(2,550)



33



(3,061)



474



(1,579)



1,746


Decrease (increase) in operating lease right-of-use assets



25



79



66



74


Decrease (increase) in trade receivables



(301)



(2,054)



2,260



(956)


Decrease (increase) in other receivables and prepaid expenses



(161)



334



(18)



(556)


Decrease (increase) in inventories



(499)



93



(1,023)



290


Increase (decrease)  in trade payables



424



(476)



(451)



(449)


Increase (decrease) in other liabilities and accrued expenses



164



267



(414)



448


Increase (decrease) in employees severance benefits, net







20



(5)



47



(348)



(1,737)



415



(1,102)



Net cash provided by (used in) operating activities



427



(497)



3,875



3,252



Cash flows from investing activities:


Purchase of fixed assets



(173)



(279)



(1,535)



(1,082)


Restricted deposits











(156)



(58)


Repayment from insurance



44







44







Net cash used in investing activities



(129)



(279)



(1,647)



(1,140)



Cash flows from financing activities:


Short- term bank credit, net







328



(377)



(1,600)


Repayment of short- term shareholder loan







(3,090)







(3,661)


Issuance of shares in rights offering, net



5,594



5,594


Repayment of long-term loans from bank



(114)



(38)



(301)



(183)


Proceeds from long-term loans











3,063



1,141


Repayment of credit from fixed asset payables



25



(86)



(261)



(477)



Net cash provided by (used in) financing activities



(89)



2,708



2,124



814



Effect of translation adjustments



189



152



196



181



Net increase in cash and cash equivalents



398



2,084



4,548



3,107



Cash and cash equivalents at beginning of the period



8,885



2,651



4,735



1,628



Cash and cash equivalents at period end



9,283



4,735



9,283



4,735

Cision
View original content:

https://www.prnewswire.com/news-releases/eltek-reports-full-year-and-fourth-quarter-2021-financial-results-301508809.html

SOURCE Eltek Ltd.